By OGJ editors
HOUSTON, July 26 --GE Commercial Finance Energy Financial Services, Stamford, Conn., and Caisse de depot et placement du Quebec of Montreal, Canada's largest institutional investor, agreed to buy the Southern Star gas pipeline system from AIG Highstar Capital for $362 million.
In addition, the purchasers agreed to assume $476 million in debt and preferred stock. The sale, subject to regulatory approvals, is expected to close within the third quarter. Southern Star's management will continue operating the pipeline from Owensboro, Ky.
Southern Star is a regulated interstate pipeline spanning more than 6,000 miles in Kansas, Oklahoma, Missouri, Wyoming, Nebraska, Colorado, and Texas. The system includes 39 compressor stations and eight storage fields.
GE's Energy Financial Services acquired 2% of the equity of Southern Star in 2003. Upon closing of the latest transaction, GE's Energy Financial Services will hold 60% interest, and Caisse de depot et placement du Quebec will hold 40% interest.
